Middlesex Water Company (MSEX)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 358,153 290,280 290,280 273,244 230,777
Total stockholders’ equity US$ in thousands 422,991 400,328 367,726 348,292 325,876
Debt-to-capital ratio 0.46 0.42 0.44 0.44 0.41

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $358,153K ÷ ($358,153K + $422,991K)
= 0.46

The debt-to-capital ratio of Middlesex Water Co. has been gradually increasing over the past five years from 0.44 in 2019 to 0.49 in 2023. This indicates that the company's reliance on debt relative to its total capital has been on the rise. A higher debt-to-capital ratio suggests that the company is financing its operations and growth through more debt, which can increase financial risk and interest expenses. It is important for stakeholders to closely monitor this trend to ensure that the company's debt levels remain sustainable and well-managed.


Peer comparison

Dec 31, 2023